GAIL India is planning to list its subsidiary Gail Gas and is aggressively investing in city gas distribution to create volumes before it takes the company to the market. The company has also planned a capital expenditure of Rs 54,000 crore, which it will spend over the next two-three years in laying of gas pipeline network that will feed households and industries such as fertiliser plants. Out of this, the company is planning to invest Rs 12,000 crore in city gas distribution networks to retail CNG to automobiles and piped natural gas to households in towns such as Varanasi and Patna.
Gail Gas, which was incorporated in May 2008, had participated in the 9th and 10th rounds of city gas distribution bidding and won in 15 and eight geographical areas, respectively.
GAIL India is India’s principal Natural Gas Company with activities ranging from Gas Transmission and Marketing to Processing (for fractionating LPG, Propane, SBP Solvent and Pentane); transmission of Liquefied Petroleum Gas (LPG); production and marketing of Petrochemicals like HDPE and LLDPE and leasing bandwidth in Telecommunications.